The truth about that $125 settlement payment

A monitor displays Equifax Inc. signage on the floor of the New York Stock Exchange in New York U.S. on Friday Sept. 8 2017. The dollar fell to the weakest in more than two years while stocks were mixed as natural disasters damped expectations

The truth about that $125 settlement payment

"Frankly, the free credit monitoring is worth a lot more - the market value would be hundreds of dollars a year", Schoshinski writes.

Because so many people have been filing claims for the cash, the payout is expected to be far less than $125 per person - perhaps less than $10.

The settlement with the FTC, the Consumer Financial Protection Bureau, and 50 USA states and territories includes up to 10 years of free credit monitoring or up to $125 cash - known as Alternative Reimbursement Compensation - for those who were affected by the data breach.

Less than 24 hours ago, the FTC's Equifax settlement website stated simply that claimants could file for a US$125 payout.

So many people are seeking cash payments from Equifax following its disastrous 2017 data breach, there may not be enough claims money for everyone to receive a $125 check, the Federal Trade Commission warned on Wednesday.

They had a choice: 10 years of free credit monitoring or $125. "They'll be asking you for the name of the credit monitoring service you already have", the FTC said. People who have already chosen the cash option will be contacted and given a chance to change their minds, he added. "Nowhere near the $125 they could have gotten if there hadn't been such an enormous number of claims filed".

Another Twitter user tweeted: 'It's ironic because paying less than the full amount is exactly what Equifax tracks and punishes you for'.

One major bank, Capital One, this week also reported a data breach that affected 106 million people in the United States and Canada, and it's also offering free credit monitoring to those people as part of its response.

The settlement administrator will be sending an email to those who chose the cash option with information on how to switch to free credit monitoring if they wish.

"The public response to the settlement has been overwhelming".

It's the fine print of the settlement that's burning consumers.

'I still haven't seen any compelling argument in favor of Equifax being allowed to exist at all, ' tweeted one social media user. We had already noted that the FTC's way of dealing with Equifax seemed particularly tone deaf, but it's getting worse. If they built a settlement structure that only works if few of the people impacted claim it, then the settlement is objectively ridiculous.

'I just hope that not being able to cover their obligations doesn't affect Equifax's ability to obtain credit in the future, ' quipped another Twitter user.

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